According to data from the Tax Administration, the Croatian real estate market is experiencing a noticeable slowdown in 2025. Namely, in the first nine months, almost 13,000 fewer properties were sold than in the same period last year, which represents a drop of almost 13 percent.
Despite new government incentives such as tax refunds or VAT for the first property and lower interest rates, buyers are still cautious, and the result is fewer transactions in almost all counties and all types of real estate.
Apartments and houses most affected
Compared to last year, about 2,500 fewer apartments were sold, while houses recorded a drop of as much as 21.9 percent. Sales of building land (−13.8%), business premises (−20.8%) and agricultural plots (−10.7%) also decreased significantly. Parking spaces recorded the biggest drop, with as much as 37 percent fewer sales compared to last year. Such data clearly shows that buyers are becoming more cautious, and interest in investments is reduced – especially for properties that do not provide a quick return on investment.
Buyers cautious, prices still high
Although the number of sales is decreasing, property prices remain high, especially in larger cities and on the coast. Many sellers still set unrealistically high prices, which is why apartments and houses are sold more slowly, and there are more and more advertisements that have been unchanged for months. Statistical data showing price increases can sometimes be misleading – a smaller number of transactions with higher prices automatically increases the average, although this does not mean that the market is actually growing. In other words, prices do not follow the real purchasing power of the population, and the market shows signs of saturation and correction.
Regional differences: the most pronounced drop in Dalmatia and Zagreb
The biggest drop in sales was recorded in the Split-Dalmatia County, where traffic is down by almost 30 percent. They are followed by Krapina-Zagorje and Dubrovnik-Neretva County with a drop of 28 and 27 percent, while Sisak-Moslavina and Šibenik-Knin also suffered a drop of more than 20 percent.
Even the Zagreb region, as the largest market in the country, is recording a drop in the number of transactions of about 20 percent.
Sales growth was recorded in only three counties – Koprivnica-Križevci, Lika-Senj and Varaždin, but these are relatively smaller markets that cannot significantly affect the overall picture.
What to expect by the end of 2025
If this trend continues, it is possible that the market will enter a phase of stabilization in the coming months, and sellers will have to align their expectations with reality. A slight price correction is expected, especially for properties that have been advertised for a long time without results. At the same time, quality and well-positioned properties – especially those in the center of Zagreb, in Istria or in attractive Adriatic locations – will continue to find buyers. This is a market segment that maintains stable demand, especially among domestic investors and foreign buyers who are looking for safe value and long-term profit.
Advice for sellers and buyers
If you are planning to sell, the most important thing is to set a realistic price in accordance with current market conditions. A quality presentation, professional photos and cooperation with an agency that knows the market can make the difference between a sold and unsold property. Buyers, on the other hand, are given an opportunity for a better negotiating position – especially if they follow the market and compare similar properties in the neighborhood. Caution is still understandable, but the right moments for investment often come precisely when the market shows signs of cooling.
Regent Real Estate: your partner in every step
Whether you are looking for a luxury apartment in Zagreb, a villa on the Adriatic coast or an investment in a new building, our team at Regent Real Estate monitors the market every day and provides full support during the buying and selling processes.
Contact usto find out how much your property is worth and what the best opportunities are for buying or selling in the current market conditions.
